Last week saw a large number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.
Here's why brokers think investors ought to buy them next week:
A2 Milk Company Ltd (ASX: A2M)
A note out of Citi reveals that its analysts have upgraded this infant formula and fresh milk company's shares all the way from a sell rating to a buy rating and lifted the price target on them to $17.45. The broker believes that short term demand for its infant formula in China could spike from stockpiling activities by consumers. This could lead to the company outperforming expectations in the second half of FY 2020. I agree that a2 Milk Company is a buy and believe it would be a great long term option for investors.
Accent Group Ltd (ASX: AX1)
According to a note out of Morgan Stanley, its analysts have initiated coverage on this footwear-focused retailer's shares with an overweight rating and $2.30 price target. The broker likes Accent Group due to its exposure to the rapidly growing active footwear market thanks to its retail brands such as HYPE DC, Platypus, and The Athlete's Foot. I think Morgan Stanley is spot on and would also be a buyer of its shares next week.
Flight Centre Travel Group Ltd (ASX: FLT)
Analysts at Morgan Stanley have retained their overweight rating and $45.00 price target on this travel agent's shares. According to the note, the broker was pleased with Flight Centre's guidance for the first half of FY 2020. And while it acknowledges that it will be hard for the company to achieve its full year guidance due to the coronavirus outbreak, it still sees value in its shares at this level. Whilst I agree that its shares look good value, I would suggest investors wait to see the full extent of the coronavirus outbreak before investing.
